The House of Lords has granted Deloitte & Touche, the liquidators of the Bank of Credit and Commerce International SA (BCCI), the right to sue the Bank of England for failing to avert the disaster that caused BCCI's collapse. The case is regarded as a landmark decision. Deloitte & Touche have fought for eight years, through a series of decisions and appeals, for the right to sue the Bank of England, which will have to appear in court for the first time in its 300 year history. Deloittes will bring a case in the High Court claiming £550 million (US$787 million) plus interest over the past 10 years (around £500 million) (US$716 million). If they win the case, BCCI creditors will receive an enhanced dividend. The decision is also significant because the Lords took the view that a regulator can be held accountable for failing to avert disaster.
Source: Three Rivers District Council and others v Governor and Company of the Bank of England (3) [2001] UK HL/16. Lovells